Friday, February 29, 2008

Don't Panic when Oil Breaks $120 a barrel in 2008

By Keith Kohl Thursday, February 28th, 2008

After filling up my tank early this morning, I couldn't help thinking it was July. And to be honest, if the weather wasn't hovering around 30 F, I probably would have checked a calendar.

If you haven't noticed, prices at the pump have been rising so far in 2008. According to the Energy Information Agency's (EIA) petroleum report, the average price for gasoline last week was $3.13 a gallon.

Although I was paying slightly more than the average price, the fact that we're paying over $3 a gallon during the winter doesn't paint a good picture for the summer of 2008, especially considering pump prices have increased over 31% compared to last year.

Now, I'm just talking about prices in the U.S. I've heard a lot of horror stories coming from my readers across the Atlantic.

So my question to you is, "What's your breaking point?"

The fivefold increase in oil prices over the several years hasn't been able to lower demand. Lately I've had several people preaching to me that oil would significantly fall in 2008. The first thing they would do is point at the growth in U.S. oil inventories over the last month and a half. Sure, U.S. stocks of crude oil have grown for the last six weeks.

But it's time to face some harsh facts:

  • We're importing more oil due to a decline in U.S. oil production.
  • U.S. crude oil inventories are over 21 million barrels less than a year ago.
  • Oil Prices have consistently failed to fall below $90 a barrel recently.

I'll confess I may have been too quick to suggest that people are accepting $100 oil, but as a reader pointed out to me this week, "We have no choice."

And I don't see things improving.

Oil Prices Breaking $120 in 2008

Ever since the price for a barrel of oil pushed past the $100 benchmark, people have been asking me where it's going from here. I've read a wide range of predictions, all of them dodging the question in some way or another. Despite a few of them suggesting prices will "inevitably fall", most have estimated oil will average slightly higher than current prices.

Geopolitical and weather factors can exacerbate prices in a heartbeat, but the long term driver behind oil prices has always been supply and demand. Admittedly, focusing solely on supply and demand is only part of the picture, but one thing has become clear: oil markets are getting tighter.

For now, however, I won't even take geopolitical or weather related influences and assume we have another relatively calm hurricane season in 2008.

If oil prices remain above $90 a barrel over the next few months, then we may be seeing $120 for a barrel of oil during the summer. OPEC seems intent on defending $90 oil, especially if rumors of a production cut in their next meeting become a reality. We'll find out for sure next week.

Last year, oil prices briefly dipped to $50 a barrel before heading back up. Since then, they haven't looked back. During the peak of 2007's driving season, prices reached around $76 a barrel.

A similar increase in 2008 will mean $140 for a barrel of oil by July!

Even with lower demand estimates, I still don't see enough of a production boost from countries to make a dent in prices. After all, the only OPEC producer that are capable of increasing output over the next few years is Saudi Arabia, any growth beyond that is questionable. Production from newer fields will take years to come online.

One of the problems is that the world's oil production is too dependent on a small number of giant fields, most of which have been pumping oil for over four decades. It's not enough that production remains flat since producers are forced to make up for decline rates. Unconventional production from offshore drilling, heavy oil deposits or even oil shales will be able to help, but won't be enough in the long run.

Remember, it wasn't too long ago that $100 oil was unimaginable.

Let's hope our government will think of a better way to deal with soaring energy prices other than trying to sue OPEC.

Gasoline Hike in 2008

Look, you don't need me to tell you the kind of effect that $120 oil would have on pump prices. If you toss in all of those other factors that can swing oil prices, we're going to be in for another record year.

Now, you don't need me to tell you the kind of pain our wallets will have at the pump if oil hits $120 a barrel this summer. I expect EIA will be revising their price forecasts throughout the year as oil prices continues to rise. One things for sure, when I'm paying between $4-5 per gallon this summer.

Perhaps next year we'll be remember fondly what it was like paying under $3 for a gallon of gas.

Thursday, January 31, 2008

Cheap cars in Asia, expensive gas everywhere

The debut of the $2,500 car is just another reason Americans will pay more at the pump, and highlights a need for some creative urban planning in the developing world.

By Steve Hargreaves, CNNMoney.com staff writer
January 31 2008: 1:43 PM EST
Original article at http://money.cnn.com/2008/01/30/news/international/mini_cars_gas/index.htm

NEW YORK (CNNMoney.com) -- The debut of the $2,500 car may be billed as a mobility breakthrough for billions of people in the developing world, but for U.S. motorists it could mean one thing: higher gas prices.

Rising demand from the developing world has long been cited as a main driver behind the runup in oil prices. That demand will only get more intense with staggering growth in car sales - and by extension, gasoline use - in places like India and China.

"We'll get into a situation where we'll have to compete with them for gasoline, $4, $5 a gallon, who knows how high we could go." said Peter Beutel, an oil analyst at the consultancy Cameron Hanover.

He says that time could come much sooner than 2015, when light vehicle sales in India are expected to total over 3 million - doubling 2006 sales - according to J.D. Power & Associates. In China they're expected to nearly triple - to over 17 million - roughly on par with projected sales in the United States.

That huge growth doesn't even begin to scratch the surface of potential car buyers in those countries though. The 2 billion-plus combined populations of India and China could one day dwarf the 300 million potential car buyers in the U.S.

Autos' year of living dangerously

China is expected to nearly quadruple its fuel consumption for motor vehicles by 2030, according to the Energy information Agency. In India it's expected to rise nearly three-fold.

By comparison, growth in the U.S. is only expected to be about 40 percent, although fuel use in the U.S. will still be more than twice that of China thanks largely to the bigger vehicles we drive.

Sales of all types of cars and trucks are growing in India and China - as they are in other developing economies like Mexico, Brazil and throughout the Middle East.

But small, super-cheap cars are important because they are marketed to people who don't have cars. Earlier this year India's Tata motors introduced the Nano, a two-cylinder, four-person sedan that gets 50 miles per gallon and is priced at $2,500. China's Chery car company has the slightly more expensive QQ, and Nissan and Renault are reportedly considering similar tiny models.

While the vehicles are efficient - certainly more efficient than gas-guzzling SUV so popular in the U.S. - experts say their effect on gas consumption will nonetheless be significant for two reasons.

First, the people that buy them will mostly be trading in motor scooters, which get much better gas mileage especially due to their ability to whiz through Asia's traffic-clogged streets, said Lee Schipper, a fellow at EMBARQ, the World Resources Institute's Center for Sustainable Transport.

Second, these cars are seen as gateway vehicles. The ultimate goal of the car companies is to move the consumer up the supply chain into bigger - and less efficient - rides.

'Nano' achieves Ratan Tata's dream

Environmentalist are uneasy criticizing countries that are basically following the development model of the West. But in addition to raising gas prices for everyone, they say the rate of growth will put the countries' roads under serious stress, make cities less livable, and add to pollution.

We've become utterly auto dependent and now we're trapped in our car," said John DeCicco, an automotive strategies fellow at Environmental Defense. He sees cheap cars creating a vast new constituency for cars and road expansion.

India's Tata, which builds the Nano, did not respond to an email seeking comment. China's Chery could not be reached.

But Gloria Bergquist, a spokeswoman for the Alliance of Automobile Manufacturers, said cars in developing counties are far more efficient than cars in the U.S. were just 20 years ago. She also defended the automobiles role in society.

"Modern life couldn't exist without the mobility automobiles provide," said Bergquist. "Access to jobs, healthcare...they really form the basis of our quality of life."

The mobility cars afford is not just relegated to developed nations as evidenced by the skyrocketing sales projections. The Chinese, Indians, Brazilians and others want these things too.

But if they're going to follow the West's development model, some argue that maybe it's better they use cars that get 50 miles a gallon.

"It was going to happen anyway, and I'd rather see them in these than in vehicles that get 20 miles a gallon," said Michael Robinet, vice president of global vehicle forecasts the research firm CSM Worldwide.

Robinet also wasn't convinced these cars will compete directly with U.S. drivers for gasoline, as refining blends often vary country to country and refining bottlenecks in the U.S. are a big reason gas prices are so high.

But the the speed at which customers in developing nations are snapping up these cars, and the sheer size of the market, come with an urban planning challenge commensurate in scope.

"If they go to fast down the road of cars, it will take decades before they are finally able to calm the traffic," said the Schipper.

Sunday, January 27, 2008

Peak oil the Federal Reserve and the Economy

Economic growth requires energy growth. The 2%-7% increase every year in economic activity that we are all accustomed to requires more and more energy to power all the things that the extra money is spent on (cars, houses, factories, highways, etc…)

When Wall St begins to understand this fact you'll see "mountains of capital wiped out" to quote one peak oil researcher.

Only 1% know what economic growth really means. It is debt based banking and how it keeps working.

There isn't enough money in existence to pay back all the old loans outstanding plus the interest. So, you have to introduce more money every year out of thin air. This is done by writing new loans a.k.a economic growth. Without these new loans, all the money would start finding its way back to the lenders and there would be none left for us to live on. You know that when you borrow $100,000 for a house you end up paying back $300,000! So you have removed $200,000 of money that goes back to the bank.

This system was given to us by the infamous Rothschild’s, and was passed into existence in a shady manner by congress.

The Federal Reserve gets to collect interest on all the money it prints every year.

Not only does the current system require energy growth, but population growth, increase use of resources, more houses, cars, etc.

I know people in the real estate "biz" and they are expected to tow the party line; of this being just another "market cycle or correction" (it isn't) and that everything can return to normal after a few months or a year of market adjustments or government interventions (it won't). Unlike economists, I realize at some point growth must stop. You all no the reasons. It's pretty fundamental... like gravity. Of course it's pointless to take on the mantel of no-growth activist unless all you want to do is get beat over the head as a whack-job.

All the forces now coalescing-energy cost and scarcity, climate change, mortgage/ housing crisis, financial markets meltdown, will create the perfect storm that will plunge us into one of those once-in-a-century turning points that we haven't seen since the Great Depression.

The basic manner in which the economy functions will be called into question and the people we depend on to explain situations and comfort us in times of crisis will be discredited and discarded. We now have the beginnings of a loss of faith in the entire way of life we've taken for granted since 1945.

After speaking to many associates about what is going on we all agreed on the following:

1) The level of mischief and associated financial losses now being admitted by the markets is purposely being underestimated by a factor of at least 100%.

2) The federal response/distraction of a tax rebate is a joke and will have no affect. Especially if people use it to buy goods that are “Made in China”.

3) This is something almost no one alive today has lived through or knows how to deal with.

4) This crisis may be the best (if also the most painful) way to get the majority of us out of our cars and suburban McMansions and back to living in urban settings within walking distance of jobs and amenities. Will energize the masses to support the development of rail transit beyond the current lip service. Will place the financial responsibility back with the homeowner instead of with the corrupt mortgage brokers so that if a kid needs dental work or the car breaks down you won't lose your house over a missed payment.

I don't have a lot so I also don't have a lot to lose. But I am still positioning myself for the coming crisis the best I can by controlling the size of my home, where I live (within easy reach of necessities), limiting the need to drive or depend on energy sucking devices, getting food locally, etc. I hope you all are doing the same.

Wednesday, January 23, 2008

Green bill of health

Original article at http://www.timesleader.com/AbingtonJournal/20080123_AJSTORY_0123_GreenSceneFour_ART.html


By Christopher J. Hughes chughes@theabingtonjournal.com

Editor’s Note: Green Scene” is a five-part series of The Abington Journal looking locally at energy efficient initiatives. This week, find out more about the role of government in effecting and regulating change.

ABINGTONS – The so-called “Green Revolution” continues to impact the decisions many residents of the Abingtons and locations abroad face. The effect may be magnified as time continues and local, state and federal governments look to revise outdated acts and pass new legislation.

Currently, almost identical bills in the Pennsylvania House of Representatives and Senate call for steadfast reports and monitoring of global warming impacts on the state. Senate Bill (SB) 266 and House Bill (HB) 110 also require an inventory of greenhouse gases, voluntary registry of greenhouse gas emissions and a climate change action plan. Senator Bob Mellow (D-Peckville) and Representatives Frank Andrews Shimkus (D-South Abington Twp.) and James Wansacz (D-Scott Twp.) have supported their respective legislation.

Mellow, the Pennsylvania Senate’s highest ranking Democrat, has also introduced a four-bill energy package that would invest more than $71 million in the development of cellulosic fuels. According to www.harvestcleanenergy.org, cellulosic ethanol differs from more conventional ethanol in both the material and processes that create it.

Conventional ethanol uses corn, wheat and soybeans to produce a corn starch that is heated, liquefied and milled for ethanol. Cellulosic ethanol can use switchgrass, saw dust and other plant wastes to create the final product. Additionally, cellulosic fuel does not use fossil fuels or other non-renewable resources to produce heat in the conversion process.

“It seems clear that cellulosic energy is one of the best and brightest alternative energy prospects,” Mellow said. “Apart from the obvious need to cut our dependence on foreign oil, my legislation would create new jobs and greatly improve Pennsylvania’s stake in this budding alternative energy industry. While I am a big proponent of cellulosic energy, I will readily consider other ideas aimed at positioning Pennsylvania to benefit from this promising and emerging green energy industry.”

With the passage of HB 110 in October 2007 and SB 266 in November 2007, the general assembly may not have far to look in establishing proposed climate change action plans. The Pennsylvania Environmental Council (PEC), a statewide non-profit environmental group, has already devised the Pennsylvania Climate Change Roadmap. The 90-page document includes 38 recommendations under subject heads including energy supply, residential/commercial/industrial and forestry.

Brian Hill, president and CEO of PEC, said that Pennsylvania’s rank in terms of greenhouse gas emissions signals a need for change. “Pennsylvania produces one percent of greenhouse gases worldwide,” he said. “As we continue to emit greenhouse gases, we must act responsibly.”

Hill said that Pennsylvania currently creates 316 million metric tons of greenhouse gases annually. The number, without positive change, is expected to reach 335 million by 2010 and 383 million by 2025. “It’s growing. Scientific consensus is that unless we change, we will see great changes across the world and across Pennsylvania.”

Part of the problem in Pennsylvania is suburban sprawl, or development that destroys green space in rural areas. “Sprawl undermines the community, destroys habitats and has a huge effect on climate change,” Hill said.

The Roadmap states that “Pennsylvania can adopt a climate change strategy that puts it at the forefront of state leadership and spurs economic development in the clean technology area…This report can inform that strategy.” Hill recommended that residents contact their state and federal legislators encouraging them to vote for change.

Sunday, January 20, 2008

Consumers driving demand for ‘green’

http://www.timesleader.com/AbingtonJournal/13826592.html
By Christopher J. Hughes chughes@theabingtonjournal.com



Barry Kaplan displays environmentally friendly household cleaning products available at Everything Natural.
ABINGTON JOURNAL PHOTO/ CHRISTOPHER J. HUGHES
Times Leader Photo Store

Editor’s note: “Green Scene” is a five-part series of The Abington Journal looking locally at energy efficient initiatives. This week, read how the age-old standard of supply and demand is beginning to impact businesses.

ABINGTONS – It’s a basic economic principle that has driven the American economy for years. Supply and demand, the idea that request for a product and its availability will dictate its final price, has supported consumers and manufacturers alike.

Now, as more and more individuals become conscious of the global energy crisis and the increased amount of alternative products and services available to combat it, supply and demand is taking a slightly different form.

According to several Abington area business owners, “greener” goods and services, those that consume less energy and are more environmentally friendly overall, are in high demand. Items like compact fluorescent light bulbs, energy efficient vehicles and organic foods and cleaning supplies are slowly being added to the regular selection of more traditional choices.

A dollar as a vote


Twenty-three years ago, when Barry Kaplan first opened the doors to Everything Natural, 426 S. State St., Clarks Summit, the natural food industry was not a business to enter to make a living. But Kaplan, who has lived his life conscious of the affect that one person can have on the environment, said the industry with roots in a greener lifestyle was a natural choice.
“This has been a lifelong endeavor for me,” he said. “I had a very strong inkling years ago to live in harmony with the planet. Of course that sounds trite, but it’s meaningful and real.”

He’s not kidding. Kaplan skipped class in high school to attend the very first Earth Day in 1970. Things have changed slowly and steadily since that time. “Thirty years ago, I was a health nut. Now, I’m an authority,” he said, jokingly.

Kidding aside, Kaplan said that response to the store in 1985 was immediately positive, and the community of people interested in natural foods and healthier lifestyles has increased and allowed the business to flourish. With interest came the improvement of many goods and services, which now include completely recycled paper products, organic cereals, fruits and dog treats and cleaning products recognized by the United Nations for their positive environmental impact.

Everything Natural also became a leader as one of the first businesses locally to offer canvas shopping bags as an option. That effort has generated an in-house wooden nickel campaign. Patrons who bring their own shopping bag or otherwise don’t require a bag when shopping at the store are given a wooden nickel at the register to designate in-store funds to a local charity. Currently, the campaign supports the Women’s Resource Center, the Lackawanna River Corridor Association and the Humane Society of Lackawanna County. Kaplan said the environmental and charitable ties follow the idea of one good initiative supporting another.

“People vote with their dollars. What is actually happening now is that major businesses are recognizing that there is a need brought about by our change of consciousness,” Kaplan said. “This is being led by consumers, and businesses are responding to us wanting change. They’re learning that they can have a competitive edge by begin greener.”

A competitive edge, however, comes with a drawback. Kaplan warned consumers about “greenwashing,” which is defined by the Merriam-Webster Online Dictionary as “expressions of environmentalist concerns, especially as a cover for products, policies, or activities.” A variety of certifications have surfaced to combat greenwashers, but Kaplan said even some so-called “green seals” have weaker standards based on what group awards them.

The positive changes have thrilled the partnership that leads the store, he said. “This is such an important part of our business, and each of the owners shares a passion for providing and supporting a sustainable business. This issue transcends every one of us. This means the health and well-being of every living thing. We’re at a place where we have to make changes, and we’re ever-so-happy to be an agent in that change.”

Kaplan is also impacting change outside the store. As a board member of the Abington Community Library and chair of its building and grounds committee, he attended the Going Greener conference hosted by the Design Institute and the Chicago Public Library in December. Based on his forthcoming report, Kaplan said the library will develop a strategic plan on making the building more sustainable, including the purchase and installation of new light fixtures and carpeting over the next two years.

“We want to be ready to use the most environmentally friendly systems available,” he said, of the library’s future efforts.

Driving change

Consumer changes are also affecting auto manufacturers. Both Honda and Toyota had four cars each named to the list of Greenest Vehicles of 2007, according to www.greenercars.org.

Locally at Toyota/Scion Scranton, Olyphant, Internet Sales Manager Chris Scarlata said consumers have responded well to Toyota’s selection of hybrid vehicles. Hybrid cars often run on an electric motor and a gasoline engine.

“Consumers have responded, especially in the past 90 days,” Scarlata said. “With the cost of fuel breaking $3 a gallon, the response of the consumer is not only do they want better gas mileage, but they want to send a signal to oil companies, too.”

The signal is sent through improved gas mileage achieved using hybrid technology. A typical Prius, the flagship of Toyota’s current line of hybrid vehicles, can receive more than 55 miles per gallon (mpg) in city driving. The brake system uses the inertia of the car to stop and recharge the battery simultaneously. As a result, Scarlata said some drivers are reaching close to 100,000 miles without needing extensive brake maintenance. “In terms of durability and dependence, we see literally no problems with these cars,” he said.

“We sell pretty much every car (Prius) we get,” he continued. “There are rebates on non-hybrid vehicles, but incentives on hybrids are rare. They pretty much sell themselves.”

Toyota currently offers hybrid models of the Prius, Camry and Highlander. Future plans include adding the Sienna minivan and truck line to a consumer’s list of choices.

“Hybrid is the answer for Toyota,” he said. “In my opinion, hybrid vehicles are the greatest value in our line. The cost of ownership is very low. Fifteen years ago, hybrid was a dream, and now it’s here. Technology is always changing and improving, but we’re well on our way with a fabulous start.”

At Matt Burne Honda in Scranton, general manager Brian Walsh said he hasn’t noticed vast changes in the showroom. “This area might be somewhat of an anomaly,” he said. “Even when we had a near recession around 2001, we didn’t see the numbers change here very much.”

The lack of change in new car sales comes with manufacturer’s incentives, which are often used to counteract rising gas prices. “Our larger vehicles – Odysseys, Ridgelines and Pilots – have benefited from those initiatives,” he said.

Incentives on hybrid vehicles are rare for Honda, just as they are for Toyota, Walsh said. Most buyers are unaware of government intervention in hybrid markets. Some buyers can receive between $500 and $3,000 in one-time tax credits for purchasing a hybrid vehicle.

“Unfortunately, enough people don’t know about it (government credits),” Walsh said. “One of the jobs a dealership has is to educate people on what they’re buying and the available advantages. Our staff understands the tax issues and how to explain them.”

Walsh added that more used car buyers, however, are increasingly budget conscious. “We can’t keep a Civic on our used car lot,” he said. The traditional Honda Civic and Civic hybrid were both named to the Greenest Vehicles of 2007, receiving an average of 30 and 49 mpg, respectively, in city driving. “People who buy used cars might be a little more budget conscious. They might be looking for something more economical, and they’re motivated by sheer need. The true indication of the economy, to me, is what’s selling off of used car lots.”

Alternative fuel sources are gaining recognition, even with the extensive cost of research and development. Honda’s compressed natural gas Civic, also on the 2007 green list, isn’t available in many markets because of a lack of fueling stations. “The important thing isn’t just developing alternative fuels sources but coming up with a way to get them to the people,” Walsh said.

“At the end of the day, people are still buying what they bought 100 years ago – gas cars.”

Greener garbage

Additional sites in Lackawanna County are also moving forward with globally conscious initiatives, including Alliance Sanitary Landfill, Taylor. The site is one of 33 Waste Management locations nationwide, and Community Relations Coordinator John Hambrose said he is excited for the future of the Taylor landfill.

The landfill is currently in the process of reviving a landfill gas-to-energy project. Since 2003, Alliance has burned the gas, predominantly made of methane, produced by decomposing waste. Estimates have shown that converting the gas to energy could produce energy to power buildings and systems on-site or be piped out of the landfill to generate power for close to 40,000 homes.

Until that project is completed, Alliance recycles a variety of natural supplies. Rain water, for example, is collected in a retention basin and used to water paths throughout the landfill to reduce dust and at the vehicle tire wash. Runoff from existing waste masses is also treated at Alliance’s on-site plant, producing up to 500,000 gallons of fresh water daily. Much of that water is applied to waste to compact garbage and increase the speed of decomposition.

Alliance is also home to three environmental test plots planted with natural trees and shrubs. “The project is testing whether native plants can be grown on a landfill cap without affecting the cap’s function,” Hambrose said. “The planning has also helped to break up the engineered appearance of the site and increased our wildlife population.”

Officials at Alliance also reused a site once damaged by strip mining. They have converted a former emergency call center into a community building as well, which is home to several Girl Scout and Cub Scout troops, as well as some local religious groups.

“It’s very satisfying when people tell us that we’re a good neighbor,” Hambrose said. That wasn’t always the case, however. In the past, Hambrose said that there were operational challenges at Alliance. Consumers bordering the landfill helped adjust changes, leading to better control over birds flocking to waste masses and the experimental landscaping projects.

“If we’re not a good neighbor, we don’t think that we’d be able to continue doing business here,” Hambrose said. “We’re operating as somebody that we would want to live next to.”

Saturday, January 19, 2008

Fuel prices around the world

The average American consumer does not know that they are not paying the full value of a gallon of gas when they fill up at the pump. That they are instead paying it through subsidies and the fact that oil companies do not pay property taxes or lease/ rent on the land that they drill on. The only exception to this is the state of Alaska, who charges the oil companies for the oil that is extracted from the state; this is where they get their permanent resident funds. Currently American’s are subsidizing the oil companies to the tune of almost $300 Billion dollars.

In the remaining article I will show you what the rest of the world pays for its fuel. Bear in mind that they are using the same oil as we are, paying the same $/ barrel as we do, they use the same type of refineries to produce the fuels, and in many cases pay 2 to 3 times more in taxes, fees and VAT’s for their fuels.

So what exactly are other countries paying for their gasoline?

Netherlands         $8.59 /US gallon

Belgium                $7.92 /US gallon

UK                         $7.83 /US gallon

Germany              $7.81 /US gallon

Italy                      $7.66 /US gallon

France                  $7.62 /US gallon

Ireland                 $6.61 /US gallon

Greece                  $5.67 /US gallon

Alberta Canada   $4.48 / US gallon

US average          $3.34 /US gallon

South Africa         $3.02 /US gallon

Now the next time you go to fill your tank and you see a biofuel for sale and see that it is a little more than regular gas or diesel, bare in mind that those alternative fuels don’t receive the subsidies that the big oil does, and those alternative fuels are produced here in the US by Americans, isn’t that alone worth the little extra? Especially once you realize that our $3.00/ gallon is not even close to the actual value of the fuel.

Another desperate addict

By Joseph Romm

The president who said "America is addicted to oil" now begs the Saudis for another fix. Like some binge-drinking, pill-popping starlet -- is there any other kind? -- the president is prostrate before his top foreign "dealer," begging for more, even at the risk of public humiliation:

The Saudi oil minister, however, waited only a short time before announcing that oil prices would remain tied to market forces -- a direct slap at Bush.

Wow! When even your dealer won't sell you more, you have got a real problem.

Just one hour later, though, "President Bush made a private visit to Saudi Arabia's King Abdullah to again ask him to open the spigots."

That is like being turned down by your dealer and then desperately appealing directly to Pablo Escobar.

Anyone for rehab or, say, plug-in hybrids?

This post was created for ClimateProgress.org, a project of the Center for American Progress Action Fund.